Economic Slowdown in Japan and
the Role of Intangible Assets on
the Revitalization of the Japanese Economy

Tsutomu Miyagawa

January 2011

Abstract

The Japanese economy has stagnated since the economic bubble collapsed in 1990. The paper points out two reasons for the long-term stagnation of the Japanese economy: the slow growth in capital accumulation including ICT assets and the decline of entrepreneurship. In the advanced countries, intangible assets play a crucial role in the growth at the aggregate and firm levels. To revitalize the Japanese economy, we need policies which promote accumulation in intangible assets.